diff --git a/include/Host.h b/include/Host.h
index 014374d336..549403e913 100644
--- a/include/Host.h
+++ b/include/Host.h
@@ -463,6 +463,13 @@ public:
         return new HostTemplate;
     }
 
+
+    /**
+     *  Executed after an update operation to process the new template
+     *    - encrypt VCENTER_PASSWORD attribute.
+     */
+    int post_update_template(string& error);
+
 private:
 
     // -------------------------------------------------------------------------
diff --git a/include/NebulaTemplate.h b/include/NebulaTemplate.h
index 9998cdf0dc..676e10593e 100644
--- a/include/NebulaTemplate.h
+++ b/include/NebulaTemplate.h
@@ -154,6 +154,13 @@ public:
 
     ~OpenNebulaTemplate(){};
 
+    /**
+     *  Read or Generate the master key file to encrypt DB data when needed
+     *  this key is added to the configuration of OpenNebula and can be obtained
+     *  through one.system.config
+     */
+    int load_key();
+
 private:
     /**
      *  Name for the configuration file, oned.conf
diff --git a/src/host/Host.cc b/src/host/Host.cc
index e9d7322349..2d440d0cdc 100644
--- a/src/host/Host.cc
+++ b/src/host/Host.cc
@@ -663,3 +663,36 @@ int Host::from_xml(const string& xml)
 
     return 0;
 }
+
+
+int Host::post_update_template(string& error)
+{
+
+    string vcenter_password;
+
+    erase_template_attribute("VCENTER_PASSWORD", vcenter_password);
+
+    if (!vcenter_password.empty())
+    {
+        Nebula& nd = Nebula::instance();
+        string  one_key;
+        string  * encrypted;
+
+        nd.get_configuration_attribute("ONE_KEY", one_key);
+
+        if (!one_key.empty())
+        {
+            encrypted = one_util::aes256cbc_encrypt(vcenter_password, one_key);
+
+            add_template_attribute("VCENTER_PASSWORD", *encrypted);
+
+            delete encrypted;
+        }
+        else
+        {
+            add_template_attribute("VCENTER_PASSWORD", vcenter_password);
+        }
+    }
+
+    return 0;
+};
diff --git a/src/nebula/Nebula.cc b/src/nebula/Nebula.cc
index 6e24fcfc92..c2cdc45bca 100644
--- a/src/nebula/Nebula.cc
+++ b/src/nebula/Nebula.cc
@@ -146,6 +146,17 @@ void Nebula::start(bool bootstrap_only)
         throw;
     }
 
+    // -----------------------------------------------------------
+    // Load the OpenNebula master key and keep it in memory
+    // -----------------------------------------------------------
+
+    rc = nebula_configuration->load_key();
+
+    if ( rc != 0 )
+    {
+        throw runtime_error("Could not load nebula master key file.");
+    }
+
     // -----------------------------------------------------------
     // Initialize the XML library
     // -----------------------------------------------------------
diff --git a/src/nebula/NebulaTemplate.cc b/src/nebula/NebulaTemplate.cc
index d1f71ffe12..5541c40ee8 100644
--- a/src/nebula/NebulaTemplate.cc
+++ b/src/nebula/NebulaTemplate.cc
@@ -15,6 +15,12 @@
 /* -------------------------------------------------------------------------- */
 
 #include "NebulaTemplate.h"
+#include "NebulaUtil.h"
+
+#include <unistd.h>
+#include <sys/stat.h>
+
+#include <fstream>
 
 using namespace std;
 
@@ -361,3 +367,69 @@ void OpenNebulaTemplate::set_conf_default()
     conf_default.insert(make_pair(attribute->name(),attribute));
 }
 
+/* -------------------------------------------------------------------------- */
+/* -------------------------------------------------------------------------- */
+
+int OpenNebulaTemplate::load_key()
+{
+    string keyfile = var_location + "/.one/one_key";
+    string key;
+
+    if (access(keyfile.c_str(), F_OK) == 0) //Key file exists
+    {
+        ifstream ifile;
+
+        ifile.open(keyfile.c_str(), ios::in);
+
+        if ( !ifile.is_open() )
+        {
+            cout << "Could not create OpenNebula keyfile: " << keyfile;
+            return -1;
+        }
+
+        ifile >> key;
+
+        ifile.close();
+    }
+    else
+    {
+        string dirpath = var_location + "/.one";
+
+        if (access(dirpath.c_str(), F_OK) != 0)
+        {
+            if (mkdir(dirpath.c_str(), S_IRWXU) == -1)
+            {
+                cout << "Could not create directory: " << dirpath << endl;
+                return -1;
+            }
+        }
+
+        ofstream ofile;
+
+        ofile.open(keyfile.c_str(), ios::out | ios::trunc);
+
+        if ( !ofile.is_open() )
+        {
+            cout << "Could not create OpenNebula keyfile: " << keyfile;
+            return -1;
+        }
+
+        key = one_util::random_password();
+
+        ofile << key << endl;
+
+        ofile.close();
+
+        if (chmod(keyfile.c_str(), S_IRUSR | S_IWUSR) != 0)
+        {
+            cout << "Could not set access mode to: " << keyfile << endl;
+            return -1;
+        }
+    }
+
+
+    SingleAttribute * attribute = new SingleAttribute("ONE_KEY", key);
+    attributes.insert(make_pair(attribute->name(),attribute));
+
+    return 0;
+}
diff --git a/src/vmm_mad/remotes/vcenter/vcenter_driver.rb b/src/vmm_mad/remotes/vcenter/vcenter_driver.rb
index 3e7a3f010f..d1a8740a45 100644
--- a/src/vmm_mad/remotes/vcenter/vcenter_driver.rb
+++ b/src/vmm_mad/remotes/vcenter/vcenter_driver.rb
@@ -40,6 +40,7 @@ require 'rbvmomi'
 require 'yaml'
 require 'opennebula'
 require 'base64'
+require 'openssl'
 
 module VCenterDriver
 
@@ -85,10 +86,26 @@ class VIClient
             raise "Error getting host information: #{rc.message}"
         end
 
+        password = @one_host["TEMPLATE/VCENTER_PASSWORD"]
+
+        if !@token.nil?
+            begin
+                cipher = OpenSSL::Cipher::Cipher.new("aes-256-cbc")
+
+                cipher.decrypt
+                cipher.key = @token
+
+                password =  cipher.update(Base64::decode64(password))
+                password << cipher.final
+            rescue
+                raise "Error decrypting vCenter password"
+            end
+        end
+
         connection = {
             :host     => @one_host["TEMPLATE/VCENTER_HOST"],
             :user     => @one_host["TEMPLATE/VCENTER_USER"],
-            :password => @one_host["TEMPLATE/VCENTER_PASSWORD"]
+            :password => password
         }
 
         initialize_vim(connection)
@@ -216,7 +233,16 @@ class VIClient
     ############################################################################
     def initialize_one
         begin
-            @one = ::OpenNebula::Client.new()
+            @one   = ::OpenNebula::Client.new()
+            system = ::OpenNebula::System.new(@one)
+
+            config = system.get_configuration()
+
+            if ::OpenNebula.is_error?(config)
+                raise "Error getting oned configuration : #{rc.message}"
+            end
+
+            @token = config["ONE_KEY"]
         rescue Exception => e
             raise "Error initializing OpenNebula client: #{e.message}"
         end